How does a freight broker fix a rate for road transportation in the day-to-day market ?
A freight & logistics brokerage company is responsible for finding the best deal for your road transportation. They do this by finding space on trucks that are heading to or from your preferred origin or destination point. The best way to find this space is by “breaking down” your freight shipment by weight, length, width, and height. Freight brokers create a bill of lading for each load they have found. A bill of lading can be created even if the load has not been fully booked yet. This allows the broker to offer a service that keeps their clients informed as to where their freight is located at any given moment in time.
A freight brokerage company will charge a small fee upon delivery of your freight from point A to point B. These charges are typically referred to as “line-haul fees”. The larger fees you will pay as a shipper are called “way-bill charges.” Way-bill charges cover any expenses that the freight brokerage company may incur to locate and hire a truck for your freight. These charges might include:
– equipment maintenance costs
– fuel costs, and
– driver wages (if provided by the freight broker).
Freight brokers usually find the cheapest freight brokerage services options available for their clients. The reason why this option might not be quite as cheap as you would like it to be is because of the profit margin that needs to be made in order for them to stay in business. Not all freight brokerage companies are out there solely out of generosity; they need to make money too! If you wish to reduce costs even more, ask a freight broker if you can load your freight trailer yourself instead of having a truck driver do it. This will eliminate one day of transport fees.
When you are using the services of a freight broker or freight brokerage company you can rest assured that they will represent your best interests. They will find the most appropriate option for your road transportation needs and keep you informed as to where your freight is located at all times during shipment.
Freight brokers depend on reliable, top quality customer service to be successful in their business. If you need additional information about freight brokerage companies, contact one of them today! If you’re interested in this field and want to try it out yourself, you can opt to become a freight broker yourself.
Good to know!